Nvidia Aims To Transform The Auto Industry: Why Jim Cramer Is Telling Competitors To Pay Attention

NVIDIA Corp NVDA is ramping up its automobile advancement efforts with a newly announced partnership that aims to infuse intelligence technology into the consumers' driving experience.

What Happened: Nvidia and Jaguar Land Rover announced Wednesday that the automaker will develop its upcoming vehicles on the full-stack Nvidia DRIVE Hyperion 8 platform.

DRIVE Orin will deliver a wide range of active safety, automated driving and parking systems, as well as driver assistance systems built on DRIVE AV software. The system will also deliver AI features inside the vehicle, including driver and occupant monitoring and advanced visualization.

"Next-generation cars will transform automotive into one of the largest and most advanced technology industries," said Jensen Huang, founder and CEO of Nvidia. "Fleets of software-defined, programmable cars will offer new functionalities and services for the life of the vehicles."

See Also: Technical Analysis: Why Nvidia Stock Looks Like It's Reversing

Cramer's Take: "Elon Musk, that's what you're supposed to have," Jim Cramer said Wednesday on CNBC's "Squawk On The Street."

"I think that Jensen Huang is going to offer a level of technology for cars that Apple has to be thinking about, Ford has to be thinking about, General Motors and mostly, yes, Elon Musk."

Cramer suggeste Musk, CEO of Tesla Inc TSLA, is likely already paying close attention to what Nvidia is working on.

Nvidia said that engineers from both companies will work together to test new automated driving features. The engineers will be able to collaborate virtually through Nvidia's Omniverse.

Nvidia is set to announce its fourth-quarter and fiscal-year 2022 financial results after the bell.

NVDA Price Action: Nvidia has traded as low as $115.66 and as high as $346.47 over a 52-week period.

The stock was down 1.12% at $261.99 at time of publication.

Photo: courtesy of Nvidia.